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Definition and Criteria of a Genuine Company in UK Sponsor Licence Applications

Definition and Criteria of a Genuine Company in UK Sponsor Licence Applications

May 21, 2024

In the context of sponsor licence applications in the UK, a “genuine company” refers to an organization that meets specific criteria set by the UK Visas and Immigration (UKVI) to ensure it is a legitimate and operating business. The genuineness of a company is crucial as it influences the decision to grant a sponsor licence, which allows the company to hire non-UK resident workers.

Here are the main factors that UKVI considers to determine if a company is genuine:

Legitimacy of Business Operations

The company must be actively trading and have legitimate operations within the UK.
Evidence of trading includes business accounts, registration with Companies House, tax documents, and other financial records.

Compliance with UK Laws and Regulations

The company should comply with all relevant laws and regulations, including those related to employment, taxation, and business conduct.
This includes having the necessary licences or permissions for their type of business if applicable.

Capability to Carry Out Sponsorship Duties

The company must demonstrate the capability to fulfil sponsorship duties, such as monitoring sponsored employees, maintaining proper records, and reporting to UKVI as required.
Evidence may include HR systems and processes that support these duties.

Need for the Sponsored Worker

The company must show a genuine need for the position they are sponsoring. This includes providing detailed job descriptions and demonstrating that the role is necessary for their operations.
Additionally, the company may need to show efforts to recruit from the local labour market if applicable.

Financial Health

The financial health of the company is assessed to ensure it can support its operations and the sponsored workers.
Financial records, bank statements, and other documents may be requested to demonstrate financial stability.

Previous Compliance History

If the company has held a sponsor licence before, its previous compliance history will be reviewed.
Any previous breaches of sponsor licence duties could negatively impact the application.

Authenticity of Submitted Documents

All documents submitted as part of the application must be genuine and verifiable.
False or misleading information can lead to refusal and further consequences.

By meeting these criteria, a company can demonstrate its genuineness and increase its chances of obtaining a sponsor licence to employ skilled workers from outside the UK.